Rosneft-BP Joint Venture Makes Second Discovery Off Sakhalin

Sakhalin 5 - Udachnaya Block
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CJSC "Elvary Neftegas" (Rosneft-BP joint venture) successfully completed drilling and testing its second exploratory well in the Kaigansky - Vasuykansky exploration license. The offshore license block, Covering over 6,000 square kilometers, lies in the south of the Sakhalin-5 acreage, northeast of Sakhalin Island. The Udachnaya well was drilled to a total depth of 2,705 meters and encountered hydrocarbons in three zones. A restricted test program was conducted on a single zone which flowed at a rate of 1,900 barrels of oil per day through a 28/64-inch choke. This second discovery in the block was made by the Transocean Legend semisub on the Udachnaya structure located about 40 kilometers offshore, in water depths of some 100 meters. The first well in the Kaigansky-Vasuykansky exploration license was drilled in 2004 on the Pela Lache structure some 15 kilometers to the east. It encountered significant volumes of oil and gas in a number of high-quality sandstone reservoirs. Elvary Neftegas plans to continue exploratory drilling in 2006.
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